A small rise on Wall Street
The Russell 2000 (NYSE: IWM) and the Dow posted modest gains on a day marked mainly by positive corporate news. The small-cap index added 2.49 points, or 0.30%, to finish at 839.97. The Dow Jones Industrial Average gained 76.17 points, or 0.56%, to 13,577.87.
News of more corporate deal-making helped stocks rebound from Tuesday’s sell-off, which was triggered when rating agency Standard & Poor’s threatened to downgrade $12 billion debt securities backed by subprime mortgages due to weakness in the U.S. housing sector.
Today, Tampa, Fla.-based steelmaker Gerdau Ameristeel Corp. (NYSE: GNA) announced that it will pay $4.22 billion in cash to purchase rival Chaparral Steel Co. (Nasdaq: CHAP), while restaurant owner YUM! Brands, Inc. (NYSE: YUM) received an analyst upgrade.
One casualty of the subprime mess was the U.S. dollar, which fell to an all-time low against the Euro. One U.S. dollar will now buy 0.7275 of the currency used by 13 members of the European Union.
The markets did not show much reaction to a prediction by the National Association of Realtors that sales and prices of U.S. homes will continue to decline throughout 2007. Sales this year are on track to be at the lowest level since 2002, the Washington, D.C.-based trade association said today.
Among specific small-cap companies:
Edison, N.J.-based New Brunswick Scientific Co., Inc. (Nasdaq: NBSC) will go private, the manufacturer of biotechnology equipment said before the opening bell. The company’s board has unanimously agreed to a merger agreement with German laboratory equipment maker Eppendorf, according to which Eppendorf will acquire the outstanding common stock of NBS for $11.50 per share, or about $110 million. The deal will be completed during the third quarter of 2007. Shares added $3.13, or 39%, to close at $11.16.
Shares of air filters maker Flanders Corp. (Nasdaq: FLDR) ran out breath, falling $1.02, or 13%, to $6.95 following news of a fire at one of its factories. The manufacturing facility located in Bartow, Fla., was completely destroyed by a fire today, the St. Petersburg-based company announced after the start of trading. Fortunately, Flanders is completely insured for any damages and loss profits. Production will be moved to other plants, but there may be a short-term supply disruption. The cause of the fire was not immediately known.
Chase Corp. (AMEX: CCF) saw its stock appreciate on news of record quarterly revenues. After Tuesday’s close the Bridgewater, Mass.-based manufacturing company reported revenues of $34.54 million for the three months ended May 31, compared with $28.01 million a year earlier. That’s a rise of 23%. Analyst estimates were not available. Net income was $2.86 million, more than double compared with a profit of $1.37 million during the same quarter of 2006. Shares gained $4.03, or 25%, to end the day at $20.24.
